Divisive political opinions are everywhere these days, but entrepreneurs might be wise to bite their tongues.

In a recent analysis of 19,898 Kickstarter campaigns, we found that budding businesses that expressed political views attracted less funding than ones that stayed apolitical.

As professors who study entrepreneurship, we wanted to understand the link between political expression and crowdfunding success. So we looked at thousands of campaigns launched over a two-year period.

We searched the campaigns for subtle expressions of conservative values – “Still remembering that all lives matter, regardless of color or religion and hoping to have made my idea of sandwich shop clear,” to name one example – and more overt ones, like “Drain the Swamp and Defend MAGA Country.”

We did the same thing with subtle liberal perspectives – like “I have become fed up and irritated by the lack of equality and diversity within media” – and overt ones, like “I believe that art matters + and the magic is real. Also: Black lives matter.”

In the end, we found that every percentage-point increase in political speech was associated with a 9% decline in funds raised for conservatives and a 17% decline for liberals.

Our theory, which our findings supported, is that people don’t expect to see anyone sharing political beliefs in a business context. When entrepreneurs violate this expectation, it leads people to view them as unprofessional and ultimately hurts their crowdfunding performance.

The backlash against political speech doesn’t seem to affect everyone equally. Campaigns with third-party endorsements, such as Kickstarter’s “Project We Love” badge, were punished less, we found. Having photos or videos on a campaign page also seemed to reduce the negative effect. An entrepreneur’s prior successful experience was effective when leaning into a conservative, but not liberal, voice.

Why it matters

As entrepreneurs become increasingly vocal about politics, they should understand the potential costs of speaking authentically. Our study shows that funders expect entrepreneurs to be apolitical in crowdfunding and penalize those who express their political values. Although we looked specifically at Kickstarter campaigns, the implications for established businesses, which also seek investment, are obvious.

To be fair, our work also finds evidence that entrepreneurs who come across as more credible – thanks to third-party endorsements, say, or their use of multimedia – are less penalized for political speech. But in general, entrepreneurs should at least consider keeping mum on politics in their funding pitches to ensure they don’t hurt their chances.

What still isn’t known

While we focused on the effect of entrepreneurs’ political speech, a natural follow-up question is whether funders’ political views affect whether they invest in a project. Researchers know that conservatives and liberals approach decision-making quite differently. So we think it’s crucial that researchers turn to this question next. These types of studies will start to provide a more holistic view of how political beliefs affect crowdfunding.

The Research Brief is a short take on interesting academic work.

The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.